“Made in China 2025” identifies CNC machine tools and basic manufacturing equipment as “strategic priority areas for accelerated breakthroughs,” emphasizing the need to strengthen forward-looking planning and achieve breakthroughs in key technologies, proactively seize emerging technological and industrial competitive advantages, and elevate China’s position in the global division of labor and its voice in international discourse. The articulation of this strategic objective is dictated by the inherent strategic characteristics and stage-specific development features of the CNC machine tool and basic manufacturing equipment industries, and it calls for careful study, thorough understanding, and vigorous implementation.

　　I. CNC machine tools and basic manufacturing equipment possess strategically critical industrial characteristics.

　　1. Anchoring China’s global competitive position in the equipment manufacturing industry

　　CNC machine tools and basic manufacturing equipment are the “mother machines” of the equipment-manufacturing industry. The technological level and product quality of a country’s machine-tool sector serve as key indicators of the overall development of its equipment-manufacturing industry. In the “Made in China 2025” initiative, the CNC machine-tool and basic-manufacturing-equipment sectors are designated as one of the strategic priority areas for China’s manufacturing industry, primarily because they play an anchoring role in determining a nation’s position within the international division of labor in manufacturing—especially in the equipment-manufacturing segment. CNC machine tools and basic manufacturing equipment form the foundation for value creation in manufacturing and the fulcrum for industrial upgrading; they constitute the core of a country’s basic manufacturing capabilities. Only with robust basic manufacturing capabilities can advanced equipment products be produced, thereby enabling the manufacture of high-value goods.

　　2. Strategic Requirements for National Defense and Industrial Security

　　In the realm of national defense and security, CNC machine tools and fundamental manufacturing equipment hold strategic significance that transcends their economic value in the production of advanced defense systems. Many critical components of modern defense equipment exhibit unique material properties, structural characteristics, and manufacturing requirements that pose substantial processing challenges; such demands cannot be met using conventional machining equipment and traditional processes, necessitating the use of multi-axis, high-speed, high-precision CNC machine tools to achieve the required performance. Even in today’s globally integrated environment, developed countries continue to impose technological embargoes and restrictions on China. In terms of industrial security, as the pace of domestic manufacturing upgrading accelerates, high-tech, high-value-added industries—particularly equipment manufacturing—are facing intensifying competition with their counterparts in developed countries. Construction machinery, electrical machinery, and transportation equipment are currently at a critical juncture in their efforts to penetrate international high-end markets; however, domestically produced machine tools still lag behind in key areas such as machining accuracy, reliability, efficiency, automation, intelligence, and environmental sustainability, thereby undermining the overall competitiveness of the industry.

　　3. An important enabler for the transformation and upgrading of user industries

　　Currently, the downstream demand structure in the machine tool industry is trending toward higher-end solutions, with numerous sectors undertaking large-scale, in-depth structural adjustments and upgrades. As a result, there is an urgent need for high-quality, high-tech machine tools. Overall, demand for mid- to high-end CNC machine tools is growing rapidly, with users increasingly seeking machines that offer high speed, high precision, multi-functionality, flexibility, multi-axis linkage, intelligence, high rigidity, and high power. For example, the automotive industry is characterized by mass production of diverse models with rapid model updates, coupled with the accelerated development of new-energy vehicles, which in turn drives the continuous evolution of machining equipment toward greater precision, efficiency, and intelligence. In the aerospace sector, the dramatic surge in civil aircraft demand and the next-generation evolution of military aircraft are propelling the development of new-generation aircraft toward lighter weight, higher reliability, longer service life, enhanced stealth, greater configurational versatility, faster response times, and lower-cost manufacturing. To support these advances, cutting-edge machining equipment is urgently required, leading to a shift in aerospace manufacturing equipment toward greater automation, flexibility, digitalization, and intelligence. For instance, in the “Two-Aircraft Special Project” aimed at achieving breakthroughs in aircraft engine manufacturing, typical components such as engine blades, integral casings, and bladed disks are progressively moving toward larger dimensions, more complex surface geometries, lighter structures, and higher manufacturing precision. In particular, the extensive use of new lightweight materials—such as high-strength, high-temperature-resistant superalloys—has resulted in overall structural parts that feature intricate geometric configurations and are difficult to machine, thereby placing new and even higher demands on high-torque, high-precision CNC machine tools. Moreover, the need for portable or mobile multi-axis CNC systems capable of on-site repair of large gas-turbine components and major equipment further challenges conventional fixed-base setups, as these small, reconfigurable modular machines must handle large workpieces. Such approaches pose significant challenges to the structural design, process specifications, and high-efficiency machining technologies of next-generation CNC equipment.

　　4. It is the strategic high ground of the new technological revolution.

　　The new round of technological revolution—characterized by intelligent manufacturing, the energy internet, and next-generation information technology innovations—provides a powerful driving force for technological breakthroughs in China’s equipment manufacturing sector and opens up vast market opportunities, particularly for high-end equipment manufacturing. As an important convergence point for information and industrial technologies, the machine tool industry is highly sensitive to new technologies and serves as a major conduit for their diffusion. Driven by this wave of technological innovation, the machine tool industry is witnessing a clear trend toward integrated innovation: leading global firms are accelerating the integration of new technologies into the machine tool sector, with networking and intelligent technologies being increasingly incorporated into machine tool products. Meanwhile, a growing number of internationally renowned machine tool component suppliers and complete-machine manufacturers are stepping up efforts to integrate cutting-edge technologies into CNC machine tools.

　　5. Strategic Pivot for the Adjustment of the Global Manufacturing Landscape

　　With the advent of the post-crisis era, advanced economies have increasingly prioritized the development of their real economies: some are continuously promoting the integrated development of emerging technologies to drive the high-end transformation of industrial technology, while others are restructuring industrial value chains to bring more high-value-added manufacturing processes and corresponding jobs back home. The United States has successively launched initiatives such as the Advanced Manufacturing Partnership and the National Strategic Plan for Advanced Manufacturing to foster advanced manufacturing and related technologies; Germany has unveiled its Industry 4.0 blueprint, aiming to develop Industry 4.0—with cyber-physical systems at its core and smart factories as its platform—and positioning it as the technological platform for a new round of the industrial revolution; Japan has released an industrial structure roadmap that identifies ten cutting-edge technology fields and seeks to leverage these areas to strengthen domestic manufacturing; and regions such as the United Kingdom, South Korea, India, and Taiwan have also introduced proactive strategies and policies to accelerate the integration of emerging technologies into equipment industries, including CNC machine tools. The machine tool industry has long been a key strategic focus for major countries and leading enterprises; as the global manufacturing landscape continues to evolve and adjust—particularly in high-strategic sectors such as the automotive, aerospace, and high-end equipment manufacturing industries—the machine tool sector serves as a critical strategic fulcrum and exerts a significant influence on future competitive advantage. China should therefore place greater emphasis on the machine tool industry, proactively plan for and secure leadership in key strategic areas, and strive to establish a favorable position in global manufacturing competition.

　　II. Clear Trends in Industrial Upgrading

　　1. Achieve breakthroughs in critical core technologies and develop a number of landmark products.

　　In the aerospace sector, China has independently developed heavy-duty forging and pressing equipment, including an 800 MN large-scale die-forging press and a 120 MN aluminum-alloy plate tension-elongation machine. These advancements have filled the domestic gap in full-piece forming technology for large, critical aerospace components, providing robust support for the next-generation development of military aircraft and the R&D of large civil airliners. Notably, the 800 MN large-scale die-forging press has already achieved full-piece forming of more than 30 types of key titanium-alloy components for aerospace applications, while the high-quality aluminum-alloy thick plates produced by the 120 MN-class aluminum-alloy wide-and-thick-plate tension-elongation machine have been successfully used in primary load-bearing structural parts such as aircraft wings, thereby ending China’s complete reliance on imports for large-aircraft aluminum-alloy thick plates.

　　In the automotive manufacturing sector, large-scale, high-speed, highly efficient, CNC–controlled, fully automated stamping production lines have secured bulk orders for U.S. domestic automotive plants in international bidding against world-class enterprises, earning recognition and respect from their global peers. Currently, these automotive body-panel stamping lines hold a domestic market share of over 70% and a global market share exceeding 30%, thereby significantly advancing the localization and self-reliance of China’s automotive equipment.

　　In the power-generation equipment sector, a 36,000-ton black vertical metal extrusion press has enabled the domestically developed, independent production of large-diameter, thick-walled seamless heat-resistant steel pipes—key components for 1,000 MW ultra-supercritical thermal power units. Large-scale open-and-close heat-treatment equipment has produced Asia’s largest monolithic forged rotor for nuclear power plants, establishing mass-production capabilities for such large rotors. Furthermore, the development of ultra-heavy-duty CNC vertical turning-milling composite machining centers, CNC heavy-duty bridge-type gantry five-axis simultaneous turning-milling machines, ultra-heavy-duty CNC floor-mounted milling-boring machines, ultra-heavy-duty CNC horizontal boring-turning machines, and specialized CNC axial wheel-groove milling machines—designed for third-generation nuclear power plant primary and secondary-loop equipment—has addressed critical manufacturing challenges associated with nuclear-pressure vessels, lifting baskets, heat exchangers, steam-turbine casings, and generator rotors, and these machines have already been installed and put into service on multiple nuclear-power-generation units.

　　2. Optimization and adjustment of product structure, with steady improvement in technological level

　　First, the level of mid- to high-end equipment has improved rapidly. At present, more than 10 types of equipment, including automated stamping lines for large automotive body panels, have reached internationally leading standards and are fully capable of replacing imported counterparts. Over 20 product categories, such as high-speed gantry five-axis machining centers, have essentially attained internationally advanced levels and are now able to substitute for imports. Precision horizontal machining centers have developed core technologies for flexible manufacturing systems with independent intellectual property rights. High-speed, multi-axis, and other high-end CNC machining centers have completed phased R&D, but there still remains a certain gap in functional performance and reliability compared with the international advanced level. Second, the tiered advancement of CNC systems is progressing steadily. China has made substantial progress in the research and development of mid- to high-end CNC systems. Since 2010, more than 35,000 sets of domestically produced mid- to high-end CNC systems have been successfully deployed in key sectors such as aerospace, energy, shipbuilding, and automotive, thereby achieving import substitution. A series of high-performance CNC systems featuring multi-channel control and multi-axis linkage have broken foreign technology monopolies; their key technical indicators have largely reached the level of mainstream international high-end CNC systems, enabling them to be integrated into a wide range of high-speed, precision CNC machine tools. High-end CNC systems have also been put into small-scale application at key defense-related enterprises. Standardized CNC systems have entered mass production, with domestic market share increasing from 10% to 25%. Several industrial-scale production bases have been established, among which Guangzhou CNC Equipment Co., Ltd. has achieved an annual production capacity of 100,000 sets of various CNC systems, ranking second globally in output. China’s CNC systems have thus initially acquired the competitiveness to rival their foreign counterparts and have begun exporting CNC systems in bulk; from 2010 to 2014, a total of over 9,600 sets of CNC systems were exported, including nearly 700 sets of five-axis linkage CNC systems. Finally, the quality of functional components has steadily improved, and their product range and series continue to expand. Domestic functional components are now being supplied in bulk to match machine tool mainframes, while cutting-tool products have basically acquired the capability to provide modern cutting tools for the automotive industry. The demonstration and bulk integration of CNC systems, functional components, and cutting tools with CNC machine tool mainframes help to establish a complete industrial chain and promote structural adjustment within the machine-tool industry.

　　3. Significant enhancement of independent innovation ensures sustainable development.

　　In recent years, research on the foundational and common technologies of machine tool manufacturing has been continuously strengthened, with product development and technological research advancing in tandem. The maturity of several key technologies—such as reliability design and performance testing for machine tools, as well as multi-axis simultaneous machining—has improved substantially. Research achievements in digital design have been put into practical application in the design of high-precision CNC coordinate boring machines and vertical machining centers, among others; furthermore, software–hardware systems for real-time dynamic comprehensive compensation of multiple errors and for embedded CNC system error compensation have been demonstrated in multiple enterprises and across various product lines, leading to a marked improvement in the accuracy of CNC machine tools.

　　III. Long Way to Go in Achieving High-End Industrial Development

　　China’s machine tool industry occupies an important position within the global machine tool industrial system and the worldwide machine tool market; however, it currently cannot yet be regarded as a machine tool powerhouse. Compared with the world’s leading machine tool nations, China’s industry still lags behind, particularly in terms of weak competitiveness in the mid- to high-end segments. Moreover, influenced by complex domestic and international economic conditions, the Chinese machine tool industry has entered a new normal, making it imperative to accelerate the sector’s transformation and upgrading toward the mid- to high-end.

　　1. International competitiveness remains to be enhanced.

　　According to data from the consulting firm Gardener, in 2014 China’s machine tool exports totaled US$3.3 billion, accounting for less than 5% of global machine tool consumption, whereas Japan and Germany each accounted for more than 10%. At the same time, a substantial share of domestically needed mid- to high-end CNC machine tools remains dependent on imports; for instance, imported equipment accounts for over 40% of the automotive sector.

　　2. Urgent Need to Strengthen the Development of Key Components in the Machine Tool Industry

　　Domestic functional components, in terms of variety, quantity, and grade, still fall short of the requirements for matching with host equipment; the market share of domestically produced mid-range supporting functional components remains to be improved, while high-end products rely heavily on imports. The competitiveness of the supporting functional components industry urgently needs to be enhanced.

　　3. Process validation and demonstration applications need to be strengthened.

　　From prototype development to practical production application, CNC machine tools must undergo extensive testing and validation in areas such as manufacturing processes, reliability and precision retention, and engineering implementation, with continuous refinement; moreover, user-supplied process validation is also required. However, both process validation and application demonstration remain weak links in the development of China’s CNC machine tool industry.

　　4. Persistent Pressure on Industrial Development

　　Global machine tool production and consumption continue to contract. According to data released by U.S.-based Gardner, global machine tool spending totaled US$75.3 billion in 2014, up just 0.3% from 2013. Meanwhile, global machine tool output has declined for three consecutive years, with total value reaching US$81.2 billion in 2014—down 3.1% year on year. The Chinese CNC machine tool industry is also under sustained pressure and remains in a downward trend. In 2014, domestic output of metalworking machine tools fell by 2% year on year, with cutting machine tools down 1.7% and metal-forming machine tools down 3.3%. At the same time, domestic demand for imported machine tools has not declined but instead increased: total imports of machine tools and tooling reached US$17.78 billion in 2014, up 10.8% year on year, of which imports of metalworking machine tools amounted to US$10.83 billion, an increase of 7.6%. This indicates that the domestic machine tool industry is struggling to meet enterprises’ high-end requirements, facing a dual burden of cyclical and structural pressures and urgently needing to identify new avenues for growth.

　　IV. Accelerating the Strategic Approach of Achieving Greater Strength Through Industry-Specific Transformation

　　1. Promote the concentration of superior resources on development

　　On the basis of enhancing the indigenous innovation capacity and market competitiveness of China’s CNC machine tools and fundamental manufacturing equipment, we will focus superior resources on the aerospace and automotive sectors, concentrating on core equipment and critical technologies, with a particular emphasis on overcoming bottlenecks in key technical areas such as performance reliability, operational stability, and system integration.

　　2. Promote the demonstration application of advanced products

　　Increase investment in projects that address representative user needs, enabling centralized validation of key technologies and core equipment for machine tools and fundamental manufacturing equipment, as well as the establishment of demonstration bases for application verification and deployment. Provide selective support for market-driven projects that emphasize product system integration, high flexibility, and intelligent capabilities, with a particular focus on enhancing equipment efficiency and intelligence.

　　3. Meeting New National Strategic Needs

　　Accelerate the development of CNC machine tools and fundamental manufacturing equipment to meet the needs of national strategic development; further focus on core equipment for key national projects; develop major products and achieve breakthroughs in critical technologies. Strive to elevate the technological level of CNC equipment and break the constraint of reliance on imports for strategically important national equipment.

　　4. Building a Complete Machine Tool Supporting Industry Chain

　　Encourage and support enterprises across the industrial chain—covering CNC machine tools, basic manufacturing equipment, CNC systems, and functional components—to establish long-term, stable strategic partnerships, thereby fostering enduring supply-chain linkages among CNC system and component manufacturers and machine-tool makers and building a complete, integrated supply chain for CNC machine tools and basic manufacturing equipment.